Understanding Budgets, Orders, Deliveries, and Invoices
Budget
A budget is a document in which a company or customer information professional determines product costs or services.
Important Notes:
- Cost of materials or products.
- Time a professional will dedicate to a client and their fee rate.
- Contribution to general consultation costs.
Other Information:
Complete and detailed description of the service to be provided, unit price of each product or service, and total price to charge customers.
Things to be Aware Of:
- Support services VAT.
- VAT not included.
- VAT exempt services.
- Shelf budget.
- Inform the client of the start and end date of service, and payment terms.
The budget commits the professional to the prices and conditions fixed, except in unforeseen circumstances. If the customer agrees, they should sign, indicating acceptance and the date.
Order
It must detail the articles solicited, including:
- Precise identification and amount of each item.
- Unit price, discounts, and other costs.
- Total price.
It may include:
Form sent to employees, delivery date, and conditions of payment.
Delivery
This is the proof document that serves as confirmation of the materials or goods delivered to the buyer.
Contains:
- Vendor ID.
- Complete identification of the place and client.
- Date.
- Detailed list of the articles delivered: Description and quantity.
Other Information:
Reference to the corresponding request, number of packages, and attached documents.
What to do when it comes to the company:
Check and ensure conditions match both the order and the delivery note. Verify that the items described in the delivery note are the same as those ordered. Sign the delivery note. If any errors are detected or the writing does not match the delivery note, register the observation on the document or reject the signed order.
What is done with the copies of the delivery note?
Copies are for the company, the transporter of the material, and the customer.
Invoice
It is the main document of commercial operations and the definitive document detailing the sale or supply of services.
It is important commercially because:
- It accredits the act and contains the main details.
- It has a legal and fiscal value.
The data shown are the name of the document and number, complete identification of who releases the invoice, complete customer ID, place and date of invoice issuance, and complete description of the operation performed.
Concepts:
- Invoice for delivery of material: Description of each product, reference number, quantity, and unit price.
- Service charged per delivery: Description of services performed, number, and unit price.
The tax base, the VAT rate applied, the amount of VAT, and the total amount payable should be specified.
- Signature or seal of the invoice issuer.
- Indicate method of payment.
Methods:
Invoice with received: The client has already paid the amount indicated on the invoice.
Pro Forma Invoice:
Proposed invoice offered to the client so that the vendor can ensure they have all the commercial, delivery, and payment conditions correct.
Corrective Invoice:
Corrects one or more earlier invoices.
How to Calculate Amount:
- Calculate the gross amount by multiplying the number of units by the unit price and adding them all.
- Apply any discounts that reduce the price.
- The net result will be the gross amount less the discounts.
- Reflect other data if any (packaging, insurance, freight).
- The tax base is calculated by adding these expenses to the net amount.
- Apply the VAT type: multiplying the taxable value by the VAT rate.
- Total amount to pay: Add the tax base amount and the amount of VAT.
- If there are prepayments, reflect them to discount them from the total import.
Bills with Different Types of VAT:
- Estimate the taxable base for the different types.
- Apply each type of VAT.
- Add the taxable bases and the VAT.
- Obtain the total invoice amount.